Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 06/19/2005, Docket: RP04- 51-003, Status: Effective

Third Revised Sheet No. 25B Third Revised Sheet No. 25B : Effective

Superseding: Second Revised Sheet No. 25B

RATE SCHEDULE FT-1

FIRM TRANSPORTATION SERVICE

(Continued)

12. RESERVATION CHARGE ADJUSTMENTS (Continued)

12.3 The Reservation Charge adjustment provided in Section 12.1 hereof

shall not apply:

(a) to a firm Shipper that receives 98 percent of its applicable

Reserved Capacity (i.e., Daily Reserved Capacity or Summer

Daily Reserved Capacity);

(b) to a firm Shipper that is unable to schedule out-of-path trans-

portation, or transportation at a secondary receipt or delivery

point;

(c) to a firm Shipper that is unable to schedule at a receipt or

delivery point due to that point being scheduled properly by an

alternate firm or interruptible shipper in an earlier nomina-

tion cycle, which is not eligible to be reduced (bumped) in

the current cycle;

(d) when Shipper:

(1) fails to properly nominate or confirm pursuant to the

scheduling timeline and requirements of Sections 4.2

and/or 4.6 of the General Terms and Conditions and/or

the other scheduling provisions of this tariff; or

(2) fails to deliver gas that conforms to the quality or

pressure specifications detailed in Sections 3 and 4 of

the General Terms and Conditions; or

(3) does not comply with a restricted delivery entitlement

notification pursuant to Section 5.2 of the General Terms

and Conditions;